Microchips are stored and shipped in elongated tubes. Each microchip must be removed from an open end of a tube and placed on a receiver, such as a moving belt, for subsequent handling, testing and processing. There are several methods that are in current use to dispense microchips from tubes and sequentially place microchips on a receiver, such as a moving belt. One method of removing microchips from a tube is to tilt the tube at an angle to allow the microchips to slide out of the lower open end of the tube. A movable stop adjacent the open end of tube controls the suggillation of the microchips on a moving belt. This method is not suitable for small microchips and can cause damage to microchips. Another method used to handle microchips from a tube is to incline the tube to allow microchips to slide out of the open lower end of the tube. A pair of driver wheels associated with an optical sensor are located adjacent the open end of the tube. The sensor activates the wheels when a microchip is adjacent the wheels whereby the wheels simultaneously rotate to move the microchip onto a moving belt. This structure consumes considerable space and is difficult to accommodate different sized microchips. An additional method is known as a vibration method. One or more structures grip the tube and retain the tube at a downwardly inclined angle to allow microchips to move out of the open end of the tube. Vibrators acting on the tube cause the microchips to fall out of the open lower end of the tube adjacent a device using a vacuum cup that picks up the microchips one-at-a-time and places them on a moving belt. This method does not control the timing or sequence of the dispensing of the microchips from the tubes. The vacuum cup pick-up device does not readily handle small and thin microchips that require precise confinement.